JAPAN'S Toshiba has signed a preliminary agreement to buy out ScottishPower owner Iberdrola's 50% stake in the NuGen UK nuclear joint venture for £85 million.

As part of the deal, Toshiba's Westinghouse nuclear unit will purchase another 10% holding from France's GDF Suez, which will retain a 40% interest.

Westinghouse will build three of its AP1000 nuclear reactors at the NuGen Moorside nuclear site in northern England, with an installed capacity of 3400 megawatts.

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